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Amortization is derived from the Middle English word amortisen, meaning ‘to kill’. It refers to the spreading of payments or the gradual elimination of a liability over a specific period of time. It has two distinct uses: the amortization of loans and the amortization of intangible assets. Learn more...

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A bond is an instrument of indebtedness from the seller or issuer to the holder. The seller is obligated to make interest ('yield') payments to the bondholder and/or to repay the initial price at the ‘maturity’ date. Learn more...

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Interest is the name for the cost of the privilege of being able to borrow money, or, in financial terms, to receive credit. It is usually paid at an annual rate. Learn more...

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Taxes are compulsory fees levelled on companies and individuals by the government as a source of public revenue. Taxes are taken either as deductions from income received, or as additional costs on products, services, and materials bought and sold. Learn more...

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Depreciation is a non-cash expense (in other words, an accounting entry) which reduces the value of an asset over time. Many types of assets naturally depreciate as they age. Learn more...

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